option clause

USAGE SUMMARY

The phrase "option clause" is correct and usable in written English.
It can be used in legal or contractual contexts to refer to a provision that gives one party the right to make a choice or decision regarding a specific matter. Example: "The contract includes an option clause that allows the tenant to renew the lease for an additional year."

✓ Grammatically correct

News & Media

Wiki

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

20 human-written examples

A Lib Dem peer, Lady Walmsley, and an MP, Dan Rogerson, have tabled an amendment taking out the "urge people not to take up this option" clause.

The Guardian

Meanwhile, the 29‐year‐old Saimes, a defensive back for the Buffalo Bills, became free agent when the option clause in his contract expired.

The New York Times

Moreover, authors want to know why they should accept a so-called "option clause," which commits them to offering their next book to the same publisher.

The New York Times

With the season less than three weeks away, he is a free agent after having exercised the option clause in his contract.

The New York Times

In a brief letter that Penguin's general counsel, Karen Mayer, sent to the writer, it said the publication of " 'Cannibal Nights' by Amazon violates the 'next-work' representation, the no-compete provision and the option clause".

The New York Times

He says that his amendment (which takes out the "urge people not to take up this option" clause) would not stop Evan Harris campaigning for what he believes in.

The Guardian

Human-verified similar examples from authoritative sources

Similar Expressions

40 human-written examples

Maynard, the 32‐year‐old wide receiver, and Herman, a 29‐year‐old guard, agreed to terms yesterday before the option clauses expired in their contracts.

The New York Times

Senate Democrats barely mustered enough votes to start debating their reform bill, and some senators who voted to allow debate have said flatly that they will not support the final bill if it retains its public option clauses.

The New York Times

However, it would be different if the franchisor negotiated such terms of acquisition within the contract negotiation process, as the franchisor could include a real options clause in the franchise contract (Gorovaia & Windsperger, 2013).

Financial Innovation

They agreed on money and years, but became stuck at a point for an early termination option, a clause that would allow him to become a free agent earlier.

The New York Times - Sports

To retain employees, for example, organizations can try one of two options: incentive clauses that vest benefits only after a certain number of years of service or "clawback" clauses that require repayment of signing bonuses in the event of early departure.

Harvard University

Expert writing Tips

Best practice

When drafting contracts, clearly define the conditions and implications of activating an "option clause" to avoid future disputes. Be specific about timelines, costs, and responsibilities.

Common error

Avoid vague language when specifying the triggers for an "option clause". Clearly outline what events or conditions must occur for the option to become exercisable.

Linguistic Context

The phrase "option clause" functions primarily as a noun phrase within legal and contractual contexts. It denotes a specific provision within an agreement that grants a party a right or choice, as evidenced by Ludwig's examples. Ludwig AI confirms its correct usage.

Expression frequency: Common

Frequent in

News & Media

40%

Wiki

20%

Encyclopedias

10%

Less common in

Science

10%

Academia

0%

Formal & Business

0%

Ludwig's WRAP-UP

The phrase "option clause" is a grammatically sound and frequently used term within legal and business contexts. Ludwig AI confirms its accurate usage, indicating it is a noun phrase that serves to identify a contractual provision granting a specific right or choice. While predominantly found in professional and neutral registers, particularly in News & Media, Wiki, and Encyclopedias, its proper implementation is crucial for avoiding ambiguities in contracts. Remember to clearly define the conditions and implications of activating an "option clause".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

optional provision

Emphasizes the element of choice inherent in the clause.

elective term

Highlights that the clause allows for a choice or election.

discretionary clause

Indicates that the clause involves the exercise of discretion.

contingent provision

Focuses on the clause being dependent on certain conditions.

right of election

Highlights the entitlement to choose or decide.

optional stipulation

Similar to 'optional provision', stressing the conditional nature.

choice clause

A more direct and simpler alternative.

elective condition

Focuses on the conditionality and choice aspects.

voluntary term

Underscores the voluntary nature of the clause.

optional condition

Highlights that the condition is not mandatory.

FAQs

How is an "option clause" typically used in a contract?

An "option clause" in a contract grants one party the right, but not the obligation, to take a specific action, such as renewing a lease, purchasing additional goods, or extending a service agreement, within a defined timeframe and under specified conditions.

What distinguishes an "option clause" from a standard contractual obligation?

Unlike a standard obligation, an "option clause" provides a choice. One party has the discretion to activate the clause, whereas a standard obligation mandates performance.

What are some alternatives to the term "option clause"?

While "option clause" is widely understood, alternatives include "optional provision", "elective term", or "discretionary clause", depending on the specific context and the nuance you want to convey.

What happens if an "option clause" is not exercised within the specified timeframe?

If an "option clause" is not exercised within the defined timeframe, the right to take the action outlined in the clause typically expires, and the party loses the opportunity to exercise that option.